I have saved enough money to pay my bills and portion of the mortgage for 1 year.

@Matt Lorenzo Have you requested the seller to remediate the mold as a part of the sale and/or asked them to credit you all of or a portion of the money it will cost to remediate?

So, if you get a preapproval today, and it takes you 3-4 months to find a property, by the time you get to the financing portioning the original documents would need to be refreshed.That being said, it's not a big deal.

-would you be more likely to consider funding a portion of the deal?

If it was a personal residence and you lived in it for 2 out of the last 5 years, you can exclude a portion or all of the capital gain on the sale of that house.Another reason to sell is that property may make a great personal residence but a lousy rental property.

You can speak to a local mortgage broker to find out the terms for mortgages on properties you are looking for but make sure you have a good sized reserve fund and are withholding a certain portion from rents to add to that reserve.

What about that route for the rehab portions?

@Benjamin Garrett Correct, however during the refi portion onto a conventional loan, would the property need to be seasoned first?

Should we just send them the water bill statement or should we attached to that an explanation to why they should now pay their portion of the water bill?

You want as much historical information as you can get but at a minimum t12, rent roll, tax returns etc.The owner finance portion is equity so calculate the NOI and subtract  the payment for owner financing and the debt and hopefully you still have cashflow.